If you have a homeowners’ coverage, then chances are it doesn’t account for damage brought on by a flood. Most home insurance policies do not offer the coverage. To find flood insurance, you must do this through the federal government and the National Flood Insurance Program. While not everybody needs flood insurance, even if you fill two requirements, you need to get flood insurance for your house.
The Flood Insurance Rate Map
The Flood Insurance Rate Map, or FIRM for brief, is spread by the Federal Emergency Management Agency. The chief goal of the FIRM will be to outline your region’s flood issues. Lenders consider this the official determination of whether you reside in a flood zone. You are able to see the map online through FEMA’s website, ask for a copy by email or by telephone. At precisely the same time, you can find a copy of the Flood Insurance Study, or FIS, which communicates your region. Flooding areas are categorized in two ways: low to moderate risk and higher risk.
Your Loan
Just because you live in what is regarded as a high risk flood area doesn’t mean you are required to have flood insurance. Nonetheless, it is highly recommended by FEMA and by the National Flood Insurance Program, which administers flood insurance in the United States. Nonetheless, your lender will need it. In fact, if your loan is backed by the U.S. government, like the Federal Housing Administration, and you reside in a high risk flood zone, you need to carry flood insurance. It is also necessary if your creditor is governed by the U.S. government.
Type of Policy
There are two types of flood insurance coverages offered by NFIP. The first is a preferred risk policy, that includes a lower premium and is designed for those in moderate or low risk areas. Conventional policies are designed for people in high-risk areas and offer coverage for both the house and your belongings. NFIP will take into account the entire year your home was built, the number of people it can hold, number of floors, contents, and where it’s found in the flood zone and your deductible before deciding your premium.
What You Pay
Flood insurance is not offered by your house insurer. Only the federal government can offer flood insurance. In this case, you pay a yearly premium, based on your geographical area and your type of policy. The average policy for a high-risk house prices approximately $370 a month. If you have a preferred risk policy, your premium cost can be as low as $100 per year. Premiums are paid on a yearly basis and may be paid by cash, check or money order.
Policy Maximums
If you buy flood insurance, you should know that there are policy maximums in case of a claim. For residential home, those maximums are $250,000 for the replacement of your house and $100,000 for the replacement of your things. Replacement of your house includes replacement of necessary contents in your cellar, including hot water heaters. Home contents include clothing, electronics, appliances and other personal possessions.